The 3 Horizons of Growth model presents a framework for businesses to categorize growth strategies into three distinct time horizons. Horizon 1 focuses on optimizing existing operations, Horizon 2 involves scaling successful initiatives, and Horizon 3 explores disruptive innovations and emerging opportunities.
What are the 3 Horizons?
The 3 Horizons represent a strategic framework that categorizes business activities into three distinct time horizons. These horizons guide organizations in managing their current operations, driving innovation, and envisioning future growth. The horizons are as follows:
Horizon 1: This horizon focuses on optimizing and maintaining existing business operations. It involves activities that generate immediate revenue and profit. Organizations work to enhance their core products and services, improve efficiency, and meet current market demands.
Horizon 2: It`s dedicated to exploring and scaling emerging opportunities. It involves initiatives that may not yield immediate results but have the potential to become significant revenue streams in the near future. Organizations invest in new products, services, or markets with the goal of achieving sustainable growth.
Horizon 3: It pertains to exploring and experimenting with new, disruptive ideas and opportunities that might lead to transformational growth in the distant future. These initiatives are often highly uncertain and carry a higher risk, but they can position organizations as industry leaders and innovators.
How do you use the 3 Horizons of Growth template?
Leverage the 3 Horizons of Growth template to engage in strategic contemplation about your present and future business prospects. While the x-axis signifies time, it doesn't dictate a sequential thinking approach. Instead, focus on all three horizons concurrently. Continuously navigate among your current business strengths, future success possibilities, and unexplored opportunities. This cyclical process ensures a comprehensive and dynamic strategy.
How do you use the 3 Horizons of Growth template?
Balanced Growth
The Horizons of Growth model provides a structured approach that prevents organizations from solely focusing on short-term gains. By considering three distinct horizons, it encourages a balanced allocation of resources and efforts across immediate, medium-term, and long-term goals.
Innovation
Embracing the model stimulates innovation by incorporating forward-looking perspectives. Horizon 3, in particular, fosters a culture of exploring disruptive innovations and emerging opportunities. This approach ensures that organizations stay adaptable to evolving market dynamics.
Long-Term Vision
One of the most valuable benefits is the preservation of long-term goals while simultaneously addressing immediate challenges. The model discourages shortsightedness, encouraging businesses to invest in future growth opportunities while maintaining a consistent trajectory.
Resource Efficiency
By strategically allocating resources across the three horizons, the model optimizes resource usage. This efficient allocation ensures that initiatives across different timeframes receive the appropriate resources, maximizing their impact and contributing to overall growth.
Risk Mitigation
The model inherently accounts for risk diversification. Balancing efforts across different horizons reduces the risk associated with relying solely on a single strategy. This diversification enhances an organization's resilience in the face of uncertainties.
